Managing and insuring travel risk involves more than planning for a single trip abroad — it’s having one’s lifestyle properly insured no matter the location. Learn more here: https://www.hubinternational.com/blog/2022/01/insuring-travel-risk/

1. Risk & Insurance | Employee Benefits | Retirement & Private Wealth
Up in the Air:
Keeping Affluent Travelers
Safe in An Unpredictable
World
Safeguard your adventurous
lifestyle with the right precautions
and protection.

2. Going Abroad: A Whole New World for Affluent Travelers | 2
Navigating New Risks
in International Travel
When it comes to international travel, high-net-worth individuals and their
families can be at particular risk: They have the danger of kidnapping and
extortion, threats to their physical safety and a hit to finances — a hit that
can include anything from being pickpocketed, having their identities
compromised and losing non-refundable expenses on high-priced, cancelled
reservations.
And of course, COVID-19 has simply multiplied these challenges, not only
presenting health risks to travelers but political instability unseen in many
years.
COVID-19 brought a new reality for high-net-worth travelers accustomed to
jetting off abroad for luxurious or adventurous trips. It’s not just they faced
cancellations and quarantines, but the calculus for international travel has
fundamentally changed. Even in countries where travel from North America
is permitted, COVID-19 has increased the likelihood of being stranded in a
country, robbery and assault, and political unrest.
That leaves travelers with more cancellations, new travel protocols, and
the threat of lockdowns while abroad and being left stranded with little
recourse. And with the pandemic hitting countries that lack proper facilities
to treat COVID-19, infected travelers could be stuck without treatment — no
matter how much care they can afford.
These are issues that money alone can’t solve. Those wanting to travel
abroad may wonder why they should bother.
But the difficult state of affairs hardly means the end of international travel
for affluent individuals. Savvy travelers will take the proper risk reduction
tactics and proper insurance coverages to mitigate risk and keep foreign
travel viable.
Managing and insuring travel risk involves more than planning for a single
trip abroad — it’s having one’s lifestyle properly insured no matter the
location. It’s more than a vacation, second home or boat. In this e-book, we’ll
explore not only the issues facing high-net-worth travelers in a pandemic
environment, but how it fits into a greater, holistic strategy of insuring a
lifestyle that you’ve earned.

3. Going Abroad: A Whole New World for Affluent Travelers | 3
1
Forbes, “European Union removes United States from safe travel list: What does this mean for you?” August 30, 2021.
Major trends affecting travel overall
The new reality in travel points to understanding how to insure
a lifestyle. Consider the following ways international travel has
changed:
ȋ COVID-19 creates mass uncertainty. In August 2021, the European Union
advised member nations to remove the U.S. from safe travel lists.1
The EU
guidance recommends that member countries limit visitors to vaccinated
U.S. adults and children with a negative COVID-19 test only. Additionally,
the U.S. requires a negative COVID-19 test to return home — a test that
must be done within 24 hours of reentry. This rule, changed from 72
hours to 24 in response to the Omicron variant of the virus, has left some
Americans stranded when catching the virus abroad.
ȋ Travelers are more risk adverse. Travelers can no longer assume ease
of entry to and exit from a foreign nation. This has tainted travel for
many, and they are exercising extreme caution to prevent being stranded
abroad.
ȋ An increase in destination vacations. Many U.S. and Canadian travelers
are opting for destination vacations, or all-inclusive resorts that
emphasize their health and safety measures. These vacations provide
additional peace of mind when it comes to health and safety. They also
can reduce safety concerns related to food, spa, entertainment, lodging
and more.

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How travel will change for
high-net-worth individuals
Travel risks for the affluent are greater than those faced by other
travelers. Here are some of the major challenges high-net-worth
travelers face:
1. EVOLVING TRAVEL SEASONS AND COVID-19 HOT SPOTS: Travel
restrictions will inevitably shape how and when people travel abroad. Travel
“seasons” will evolve, creating short travel windows with limited airline
seating and high prices. Similarly, “safe” destinations may suddenly become
COVID-19 hot spots, with travel restrictions imposed and lifted with little
warning.
2. FEWER OPTIONS: Reliable transportation, availability of attractions, high-
end dining and having good medical options are no longer a given when
abroad. Airlines have responded to travel restrictions with fewer flights
abroad at higher prices. The normal risks of travel, such as delayed or
canceled flights, are more commonplace and the options after such a
change are limited. As countries open and close their doors to tourists,
costs are likely to increase — or be erratic — at the very least.
3. STAYING HEALTHY: In addition to those traveling abroad who already have
health concerns, there’s the pandemic. Even vaccinated individuals must
take precaution when traveling abroad against COVID-19. So far, vaccines
have proven effective against variants that have taken hold elsewhere, but
that may not always be the case. And when abroad, health care options will
be limited, even in countries with advanced health care systems. Travelers
must be aware of their options if they contract COVID-19 abroad.

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4. PHYSICAL THREATS: Protecting one’s physical safety is the most-important
aspect of any trip abroad. In a pandemic world, however, travelers are
seeing increased rates of crime in some nations due to the economic
hardship of the pandemic. Threats include kidnapping and ransom (K&R)
scenarios, robbery and sexual crime. In addition, technology and social
media have may provide a window into the plans of high-profile travelers as
they post and tag their locations.
5. FINANCIAL THREATS: This goes beyond getting mugged or losing credit
cards or cash. It means ensuring that fully or fractionally owned properties
and goods (such as autos) are kept safe when you’re in the country or not.
It also means having protection against expensive trips being cancelled
for whatever reason. Identity theft, cybercrimes and scams (both online
and in person) are also issues. The pandemic has increased the number of
scams aimed at travelers as criminals take advantage of ever-changing local
protocols and visitor confusion.

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TRAVELERS BEWARE
Risk Management and Insurance
Considerations
The proper insurance coverages comprise the cornerstone of risk
management for high-net-worth travelers. Here are three policies
to consider:
Travel insurance can be bought for general travel for a year or
per-trip, which must be purchased within 10 to 30 days after
booking the trip, depending on the carrier.
Travel coverage purchased through airlines typically
covers cancellations for specific reasons (natural disasters,
illnesses). “Cancel for any reason” or CFAR coverage, ensures
reimbursement for all travel expenses regardless of why a trip
was cancelled.
Pandemic and epidemic cancellations are typically included in
travel insurance as well, subject to the individual policy. Some
require cancellation 48 hours prior to departure for full coverage;
others will reimburse half due to a pandemic-related cancellation.
This includes both if a traveler becomes sick with COVID-19 and
is suddenly reluctant to travel, or if the country has closed its
borders due to the pandemic.
With the COVID-19 virus mutating into different variants like
Delta and Omicron, many countries require additional quarantine
coverage, which covers a required quarantine period in their
country.
Travel Insurance

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Evacuation coverage should be a part of every comprehensive
travel insurance plan for high-net-worth travelers. Political
evacuation coverage provides resources in the case of political
unrest, armed conflict or personal threats. If this type of coverage
seems applicable for politically unstable countries only, consider
that it was used during France’s “yellow-vest” protests in 2019
and 2020.
Medical evacuation coverage provides transportation to the
nearest medical facility that can help the traveler, whether
that’s in country or requires transportation out of the country.
When traveling internationally, purchasing $1 million of medical
evacuation coverage is appropriate. Medical coverage will be
provided for those contracting COVID-19 as well.
K&R coverage provides access to hostage recovery services,
protection programs and security detail. Some insurance
companies also provide awareness training for high-risk
individuals before they travel. Other carriers can track high-net-
worth travelers’ movements to help ensure safety.
Political and Medical Evacuation Coverage
Kidnap and Ransom (K&R) Coverage

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TALES OF WOE
What happens when you
travel unprepared?
A look behind the curtain
A highly visible corporate executive followed his company’s travel
safety protocols by booking private travel, hiring a protection detail
and safeguarding his itinerary. But while he followed protocol, his
daughter excitedly shared the family’s behind-the-scenes travel photos
on social media, documenting their plans and at-the-moment locations
for any interested outsider.
Road rules
A high-net-worth traveler found himself in jail after a car accident in
Venice, Italy. He had not purchased travel insurance, assuming that his
domestic insurance would cover him. On top of being in jail, the traveler
had to pay an enormous fine and had to spend the rest of his cash to
leave the country.
No insurance, no compensation for theft
After high-value items were stolen from their hotel room safe in Mexico
using the master code, a high-net-worth family was robbed of their on-
person items while walking the street. The family lacked travel coverage
and could not recover the cost of the lost items, cash and cost of travel.

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Missing persons
In the case of travelers who did plan ahead, a family
that lost contact with their children who were
traveling in Costa Rica due to stolen cell phones
were able to track them down via their insurance
company, which leveraged local security contacts.
Coverage takes the sting out
After a poisonous snake bite on a remote hike
in Nairobi, one family was able to video chat
with an American doctor, describe the situation,
and receive personalized instructions on how to
manage until they could reach an adequate medical
facility. The service was available because the
family paid for medical coverage.
Stones you can’t throw
When their daughter got a kidney stone and
needed urgent medical care while traveling
overseas, one high-profile family that didn’t have
travel insurance had to hire their own private jet to
get their daughter back home. A travel insurance
policy would have covered these costs.
BEFORE YOU GO
Before embarking on an
international trip, take some basic
precautions:
Map out important locations. This includes
the nearest English-speaking medical
emergency facility and the U.S. or Canadian
consulate in the country. Have the contact
information of the local U.S. embassy
programmed into your phone.
Pack a black bag. Bring a preventative
medication kit or a black bag with contents
tailored for the destination. Bring an extra set
of anything you might use regularly, including
your prescription medications, and over-the-
counter allergy and migraine medications as
well as general pain reliever. Make sure that all
medications are legal in your destination, as
some prescription drugs legal in the U.S. and
Canada are banned elsewhere.
Take along a satellite phone. If traveling
to a remote area, satellite phones allow for
communication even during power outages, in
the most remote corners of the world.
Pay in advance, whenever possible. Limit
the amount of money and risk by pre-paying
when possible. Pay in advance before you
travel for hotel stays, transportation and
entertainment.

10. This information is provided for general information purposes only. HUB International makes no warranties, express, implied,
or statutory, as to the adequacy, timeliness, completeness, or accuracy of information in this document. This document does not
constitute advice and does not create a broker-client relationship. Please consult a HUB International advisor about your specific
needs before taking any action. Statements concerning legal matters should be understood to be general observations and
should not be relied upon as legal advice, which we are not authorized to provide.
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